Paytm transfers nodal account to Axis Bank for seamless transactions

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Fintech firm One97 Communications, owner of the Paytm brand, has shifted its nodal account from Paytm Payments Bank to Axis Bank.

According to a regulatory filing, the move will allow continuity of Paytm QR, Soundbox and card machines after the March 15 deadline set by the Reserve Bank of India (RBI).

RBI has advised customers and merchants of Paytm Payments Bank Ltd (PPBL) to transfer their accounts to other banks by March 15, giving the distressed entity 15 days to shut down most of its operations, including deposit and credit transactions. have got it.

“The Company has transferred its nodal account to Axis Bank (by opening an escrow account) to continue seamless merchant settlements as before. This arrangement will enable seamless integration of the nodal account being used by OCL with Paytm Payments Bank. “This is expected to change. Paytm Payment Services Limited (PPSL), a wholly owned subsidiary of OCL, has been using the services of Axis Bank since its inception,” Paytm said in a filing.

Paytm’s nodal account is like a master account in which transactions of all its customers, merchants are settled.

RBI has clarified in the list of FAQs that Paytm QR Code, Paytm Soundbox or Paytm POS terminals will continue to function even after March 15 if they are linked to other banks instead of PPBL.